News Summary
California’s unemployment rate has climbed to 5.5%, the highest in the nation, despite the addition of 15,000 nonfarm jobs in July. The Employment Development Department reported a net job increase of 83,800 year-over-year, but sectors like technology and professional services are facing significant challenges, contributing to ongoing job losses. Economists express concerns about the region’s economic stability amidst dependence on the tech sector.
California has reported an increase in its unemployment rate, which has now reached 5.5%, the highest in the nation. In July, the rate rose by 0.1% percentage points from June’s rate of 5.4%. Despite this rise, California added 15,000 nonfarm jobs during the same month, accounting for 20.5% of the 73,000 total jobs created nationwide in July.
The California Employment Development Department (EDD) indicated that the state’s job gains in July followed a revised loss of 9,500 jobs in June. On a year-over-year basis, California saw a net increase of 83,800 jobs, with substantial contributions from sectors such as private education, health services, and government. Notably, six of the eleven industry sectors exhibited growth during July.
However, the state continues to face challenges. The largest job losses for the month were concentrated in professional and business services, which have shown persistent declines throughout 2025. In the information sector, primarily driven by technology, 1,000 jobs were lost from June to July, contributing to a significant year-over-year reduction of 12,400 jobs in that field.
Statewide Employment Data
Currently, there are approximately 1,088,600 unemployed individuals in California, marking an increase of 18,200 from June and up 31,800 from July of the previous year. This increase in unemployment is partially attributed to ongoing adjustments in the state’s technology sector, which has seen considerable layoffs related to the pandemic and advancements in artificial intelligence, amounting to over 10,000 job cuts in 2025 alone.
Breal Area Employment Trends
In the Bay Area, a region heavily influenced by economic shifts, 2,800 jobs were gained in July, alleviating a prior loss of 1,700 jobs in June. However, the year-to-date job losses in the Bay Area remain significant at 17,400 jobs. Specifically, the East Bay contributed a gain of 900 jobs, while both the South Bay and the San Francisco-San Mateo region saw gains of 800 jobs each during July.
Nevertheless, the technology sector’s struggle in the Bay Area persisted, resulting in the loss of 6,700 jobs statewide, with the Bay Area alone accounting for 2,500 of those losses. In contrast, the health care industry managed to create 4,800 jobs in the Bay Area, with notable increases across various regions: 2,100 jobs in the East Bay, 1,600 jobs in the South Bay, and 1,000 jobs in the San Francisco-San Mateo region.
Industry-Specific Performance
While some sectors experienced job gains, others struggled. The manufacturing sector in the Bay Area lost 1,100 jobs, the retail sector saw a decline of 800 jobs, and the construction sector lost 100 jobs in July. These trends reveal underlying concerns regarding the Bay Area’s reliance on the technology sector and the associated housing supply issues.
Future Outlook
Economists have expressed concerns about the overall job market outlook in the Bay Area, describing it as being “on shaky ground.” Despite the increase in jobs reported in July, the region’s dependence on technology and the extent of job losses in related sectors raises questions about its economic stability moving forward.
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: Unemployment Rate Rises
- Kron4: California Unemployment Rate Highest
- Orange County Register: Southern California Unemployment Hits 6.1%
- Victor Valley Daily Press: Unemployment Numbers
- Victor Valley Daily Press: Unemployment Data
- Silicon Valley: Bay Area Jobs and Tech Economy
- Wikipedia: Unemployment
- Google Search: California unemployment 2025
- Google Scholar: California unemployment
- Encyclopedia Britannica: Unemployment
- Google News: California unemployment
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
